Short positions

Shorting is the process of selling a position before or during its price decline with the intent to buy it back lower. There are two reasons to use the shorting function: The first reason is to avoid holding a losing position and the second reason is to make a profit.

Let's say you bought 1 BTC for 8000 USD and you get a hunch that BTC is going to drop in value. You can then go to your Cryptohopper dashboard and click "short" on your BTC position. Cryptohopper will then sell your BTC and track the position in your shorting tab. You can then also set up a buyback price, indicating at what price you would want to buy back the asset. It will then constantly be monitoring the price change, and if/when it hits your chosen buyback price, your hopper will automatically buy it back.

Do this with coins you believe in, especially those going through a slight period of decline that you are sure will head to the moon someday.

How to Manually Short a position

Navigate to your open positions and find a position you want to short. Recommended positions are those which you expect will decline in value in the future.

Click "info" button for that position and select "short position"

Your position will then be sold, and will then move to the short positions tab, and the money you gained from the sale will be reserved.

Example: In the screenshot below you will see some positions that had been shorted. Note that now there are now two percentages rather than one.

The Percentage on the left indicates your result. This is different from open positions because a positive number will actually reflect a decline in price.

So take QKC - since you sold it, the position has actually gone down 2.25%. This figure is green, because you should be happy that you sold it, otherwise you lost 2.25 percent.

Moving on to the figure on the right, in the case for QKC, you see in yellow: -13.79%. This figure indicates your actual result.

In the case of QKC, that position was sold at -16.04%, but since your position has gone down 2.25%, your actual indicates a figure of 13.79%. The actual figure will, therefore, show you at what point you could buy back an investment, to help you break even on bags.

You can fully customize your shorting process in the shorting tab by applying features like trailing stop-short, triggers or full auto-shorting.

Happy Hopping!

With the automated crypto trading bot of Cryptohopper you can earn money on your favorite exchange automatically. Auto buy and sell Bitcoin, Ethereum, Litecoin and other cryptocurrencies.